“For now, five banks are expected to work on the SpaceX IPO: Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley. Law firms Gibson Dunn and Davis Polk are also advising on the deal,” the NYT wrote.
We contacted SpaceX today and will update this article if it provides any comment.
Banks will receive large commissions
The NYT notes that when there is a major IPO, “banks find ways to ingratiate themselves with the IPO company, as well as its CEO.” The SpaceX offering may end up being the largest initial public offering of all time.
“The IPO is expected to raise more than $50 billion at a valuation of more than $1 trillion, meaning banks could earn fees in excess of $500 million for advising on the deal,” the NYT wrote.
Those rates could be even higher, based on a Bloomberg Report yesterday that SpaceX increased its target valuation to more than $2 trillion. It would be a big increase over the $1.25 trillion valuation reported regarding the SpaceX/xAI merger two months ago.
Musk’s car company, Tesla, has a market capitalization of more than $1 trillion. musk recently got a pay package that would give it $1 trillion over the next decade if Tesla reaches a market cap of $8.5 trillion and meets other goals.
